I think the GOP understood that the chances of ousting Obama were slim, which is why they didnt run a better candidate. It's an understandable stradegy, to save the better contenders for 2016. However, I honestly believe if they had ran a better candidate coupled with a better campaign, they would have won.
I think you're right. I prolly would have voted for Huntsman, but with so many wackaloons crawling out of the woodwork (Santorum, Bachmann, Gingrich) they made Romney look reasonable by comparison and the Huntsmans and Pawlentys never had a chance. That's what happens when you live on (and enable) the fringe. The more the RP allows itself to be tugged off further and further to the right, the more it will continue to miss out on election day.